2025-2026 Bill 4337 Text of Previous Version (May. 07, 2026)

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 2-15-130 SO AS TO GRANT SUBPOENA POWERS TO THE LEGISLATIVE AUDIT COUNCIL; by amending SECTION 2-15-40, RELATING TO THE QUALIFICATIONS FOR THE DIRECTOR OF THE LEGISLATIVE AUDIT COUNCIL, SO AS TO EXPAND THE PREREQUISITES FOR HOLDING THE POSITION OF DIRECTOR, AMONG OTHER CHANGES; by amending SECTION 2-15-61, RELATING TO ACCESS TO AGENCY RECORDS, SO AS TO EXPAND THE LEGISLATIVE AUDIT COUNCIL'S ACCESS TO RECORDS AND FACILITIES UPON REQUEST AND TO PROVIDE PENALTIES FOR FAILING TO COMPLY; AND by amending SECTION 2-15-120, RELATING TO THE CONFIDENTIALITY OF RECORDS, SO AS TO FURTHER DEFINE WHich records are CONSIDERED CONFIDENTIAL AND TO REVISE THE DEFINITION OF "RECORDS."

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Chapter 15, Title 2 of the S.C. Code is amended by adding:

Section 2-15-130. (A) For the purposes of carrying out its audit duties pursuant to this chapter, the Legislative Audit Council may issue subpoenas and subpoenas duces tecum to a state agency, its employees, and its contractors and examine the records, reports, audits, reviews, papers, books, recommendations, contracts, correspondence, or any other documents maintained by an agency and compel sworn testimony by subpoena.

(B) The Legislative Audit Council may apply to a circuit court for an order holding an individual in contempt of court if the individual refuses to give sworn testimony under a subpoena issued by the Legislative Audit Council, otherwise disobeys a subpoena or subpoena duces tecum issued by the Legislative Audit Council, or otherwise refuses to provide requested documentation.

(C) Prior to issuance of a subpoena or subpoena duces tecum or making application for a contempt order pursuant to this section, the council shall approve such action by a majority of the voting members and must obtain written approval from either the President of the Senate or the Speaker of the House. A copy of the written approval of the President or of the Speaker obtained pursuant to this section shall be provided to the leadership of other legislative body prior to issuance of a subpoena, subpoena duces tecum or application for contempt by the Legislative Audit Council.

SECTION 2. Section 2-15-40 of the S.C. Code is amended to read:

Section 2-15-40. The Council shall be in charge of a Director director who shall be elected by a majority vote of the Council and he the director shall hold office for a term of four years and until his a successor shall have been elected and qualifies. The Director director shall be chosen solely on the grounds of fitness to perform the duties assigned to him and shall possess the following minimum qualifications: (a) a Baccalaureate Degree from an accredited college or university; (b) at least five years of experience in public, industrial or governmental accounting or auditing with at least three years in a responsible managerial capacity. No member of the General Assembly nor anyone who shall have been a member for two years previously shall be appointed as Directordirector. The Director director shall act as Secretary secretary for the Council and he shall have authority to employ, with the approval of the Council, such technical, clerical, and stenographic assistance audit staff as may be necessary to carry out the duties of the office; provided, however, that at least one staff member shall be qualified to audit or to supervise the audit of State programs and activities in order to determine if funds have been used in a faithful, effective, economical and efficient manner.

SECTION 3. Section 2-15-50 of the S.C. Code is amended to read:

Section 2-15-50. For the purpose of this chapter "state agencies" means all officers, departments, boards, commissions, institutions, universities, colleges, charter school sponsors or authorizers as defined in Section 59-40-40, bodies politic and corporate of the State and any other person or any other administrative unit of state government or corporate outgrowth of state government, expending or encumbering state funds by virtue of an appropriation from the General Assembly, or handling money on behalf of the State, or holding any trust funds from any source derived, but does not mean or include counties.

For the purposes of this chapter, "audit" means a full-scope examination of and investigation into all state agency matters necessary to make a determination of:

(a)(1) whether the entity is acquiring, protecting, and using its resources, such as personnel, property, and space, economically and efficiently;

(2) the causes of inefficiencies or uneconomical practices; and

(3) whether the entity has complied with laws and regulations concerning matters of economy and efficiency; and

(b)(1) the extent to which the desired results or benefits established by the General Assembly or other authorizing body are achieved;

(2) the effectiveness of organizations, programs, activities, or functions and whether these organizations, programs, activities, or functions should be continued, revised, or eliminated; and

(3) whether the entity has complied with laws and regulations applicable to the program.

SECTION 4. Section 2-15-61 of the S.C. Code is amended to read:

Section 2-15-61. (A) For the purposes of carrying out its audit duties under this chapter, the Legislative Audit Council shall have access to theall records and facilities, irrespective of confidentiality, of every state agency during that agency's operating hours with the exception of reports and returns of the South Carolina Department of Revenue as provided in Sections 12-7-1680 and 12-35-1530. Staff of the Legislative Audit Council shall have access to the facilities of every state agency during that agency's operating hours. The Legislative Audit Council must be permitted to observe the proceedings of any state agency, board, or commission, except for executive sessions.

(B) Agencies must provide readily available records to the Legislative Audit Council upon request without delay. If the requested records are not readily available, agencies must provide a written explanation regarding the availability of the records and a reasonable timeframe for their delivery. Agencies shall provide access to records requested by the staff of the Legislative Audit Council regardless of whether the information is sought to perform an audit of another agency.

(C) Any person who willfully fails to comply with the provisions of this section or otherwise willfully obstructs the Legislative Audit Council from conducting a duly authorized audit is guilty of a misdemeanor and may be fined not more than one thousand dollars or imprisoned not more than one year. If the person convicted is an officer or employee of the State, the person may be dismissed from office or employment.

(D) As used in this section:

(1) "Access to records" means, but is not limited to, the production of records and the ability to inspect, print, copy, download, and otherwise obtain records from an agency upon request by the Legislative Audit Council for the purpose of placing in Legislative Audit Council records.

(2) "Records" means, but is not limited to, data, reports, audits, documents, correspondence, emails, text messages, maps, photographs, recordings, contracts, or other materials and information, regardless of physical or electronic form or storage, prepared, owned, used, received, in the possession, custody, or control of, or retained by the agency, whether confidential or not. Unless requested or approved by Legislative Audit Council staff, no records are to be provided with redactions or omissions. The Legislative Audit Council must follow appropriate procedures to ensure the confidentiality and security of this information.

SECTION 5. Section 2-15-120 of the S.C. Code is amended to read:

Section 2-15-120. (A) All records and audit working papers of the Legislative Audit Council, with the exception of its final audit reports provided for by Section 2-15-60, are confidential and not subject to public disclosure. irrespective of whether the records and working papers would otherwise be considered public pursuant to the South Carolina Freedom of Information Act or any other state law. The court in determining the extent to which any disclosure of all or any part of a council record is necessary shall impose appropriate safeguards against unauthorized disclosure.

(B) As used in this section, "records" includes, but is not limited to, books, papers, maps, photographs, cards, tapes, recordings, or other documentary data, reports, audits, documents, correspondence, emails, text messages, maps, photographs, recordings, contracts, or other materials regardless of physical form or characteristics prepared, owned, used, in the possession of, or retained by the Legislative Audit Council. and information, regardless of physical or electronic form or storage, prepared, owned, used, received, in the possession of, or retained by the Legislative Audit Council.

(C) Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, may be fined not more than one thousand dollars or imprisoned not more than one year. If the person convicted is an officer or employee of the State, he must be dismissed from office or employment and is ineligible to hold any public office in this State for a period of five years after the conviction.

SECTION 6. Section 2-15-10 of the S.C. Code is amended to read:

Section 2-15-10. There is created the Legislative Audit Council consisting of five six members, one three of whom must be appointed by the President of the Senate and three of whom must be appointed by the Speaker of the House of Representatives. Of those appointed, one must be a practicing certified public accountant or a licensed public accountant and one of whom must be an attorney. The council must be elected by the General Assembly in a joint session from the nominees presented by the nominating committee. The council also includes as ex officio members the following: the Chairmen of the Senate and House Judiciary Committees or a designee by either chairman from the membership of the respective committees and the Chairmen of the Senate Finance Committee and the House Ways and Means Committee or a designee by either chairman from the membership of the respective committees. The ex officio members, including their designees, are voting members on all matters except those pertaining to auditing functions and personnel matters. The council is directly responsible to the General Assembly and is independent of any other state agency, board, or department.

SECTION 7. Section 2-15-30 of the S.C. Code is amended to read:

Section 2-15-30. The terms of office of the members of the Council shall be for six years and until their successors are appointed and qualify., except that of the initial members, one shall be elected for the term of two years, one for a term of four years and one for a term of six years. No person who is either a member of the General Assembly or has served in the General Assembly during the preceding two years shall be elected to the Council. Any member may succeed himself on the Council. The Council shall elect its own chairman.

SECTION 8. This act takes effect upon approval by the Governor.

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